Marketing II Assignment -2

PUMA
Submitted by, O.B.Vishnu Ruban 2012PGP236 Section A / Group No. - 4 IIM Indore Date of Submission: 15/01/2013

Marketing II Assignment 2

Vishnu Ruban OB 2012PGP236

TABLE OF CONTENTS Particulars PUMA Background What is PUMA and Why chosen this brand? Marketing Mix ----Product ----Price ----Place Promotions A detailed report on PUMAs promotion strategies ----Promotion Strategy ----Advertising Program ----Concept Retail Stores ----Sponsorships ---------Pele ---------Usain Bolt ----Events ---------Bring it back bin ---------Speed Test ---------FIFA World Cup ----Corporate Social Responsibility ---------Soles4Souls ---------Puma Sustainable supply chain ---------Launch of Eco friendly bags ---------Puma Social Conclusion Page Number 2 2 3 4 4 4 5 5 6 6 7 7 8 9 9 10 10 11 11 11 12 12 12

Marketing II Assignment 2

Vishnu Ruban OB 2012PGP236

PUMA
PUMA - Background:
History: Puma SE, officially branded as PUMA, is a major German multinational company that produces athletic shoes, footwear, and other sportswear. The company was formed in 1924 as Gebrder Dassler Schuhfabrik by Adolf and Rudolf Dassler. The relationship between the two brothers deteriorated until the two agreed to split in 1948, forming two separate entities, Adidas and Puma. Both companies are currently based in Herzogenaurach, Germany. Following the split from his brother, Rudolf created a new firm that he called "Ruda", from "Ru" in Rudolf and "Da" in Dassler. Rudolf's company changed its name to Puma Schuhfabrik Rudolf Dassler in 1948. Puma's earliest logo consisted of a square and beast jumping through a D, which was registered, along with the company's name, in 1948. Puma's shoe designs feature the distinctive "Formstripe", with clothing and other products having the logo printed on them.
Figure 1: PUMA - Formstripe

Business turns: Puma became a public company in 1986, and thereafter was listed on the Brse Mnchen and Frankfurt Stock Exchange. In May 1989, Rudolf's sons Armin and Gerd Dassler agreed to sell their 72 percent stake in Puma to Swiss business Cosa Liebermann SA. Present day: Puma AG has 9,500 employees and distributes its products in more than 120 countries. For the fiscal year 2003, the company had revenue of 1.274 billion. Puma ranks as one of the top shoe brands, after Reebok, Adidas, and Nike. The company has been led by CEO and Chairman Jochen Zeitz since 1993. His contract was extended until 2012 in October 2007. Japanese fashion guru Mihara Yasuhiro teamed up with Puma to create a high-end and high-concept line of sneakers Reference: http://en.wikipedia.org/wiki/Puma_SE

What is PUMA and Why chosen this brand?

Puma A brand synonymous with Fashion, style, and sport. Through Fresh design, co-branding and partnerships with celebrities and famous designers, Puma has elevated their brand image so that it now competes with fashion brands as well as their traditional rivals in the sporting footwear industry. My favourite sportswear brand due to its sporty, stylish looks, engrossing logo and colours

Marketing II Assignment 2

Vishnu Ruban OB 2012PGP236

PUMA
Reason for Being Value Proposition Persona Associations Mixing the infuences of sports, lifestyle, and fashion Fits your active lifestyle Elegant, colorful, fresh, spontaneous, individual, metropolitan, international Fashion brands (Gucci, Armani, Dolce Gabbana). Fringe / extreme sports. Music artists & movie stars. Anyone who leads an active lifestyle

Audience

Marketing Mix:

Products:
Footwear Shoes, Sandal, Slippers Apparel T-shirts, Shorts, Track suits, Jackets, Accessories Gloves, scarves, Belts, caps, hats, wallets, socks, water bottles Sports Equipments Cricket - Bat, Pad, Gloves Football - Boots, Shin Guard, Stockings Golf & Tennis - Apparels

Place:
Direct Sales Retail Outlets Online Sales Indirect Sales Franchisees Online Sales - Retailers E-Commerce - Yes

PUMA
Promotions:
Sponsorship Athletes, Players Event Sponsorship Olympics, Marathon, World cup Social Programs Charity Campaigns Sales Promotions CSR

Price:
Value Pricing Seasonal Pricing Range Footwear - Rs. 599 to Rs. 11,599 Apparels - Rs. 699 to 5,999 Accessories - Rs. 399 to 6,499 Sports Equipments - Rs. 1,349 to 17,999

Marketing II Assignment 2

Vishnu Ruban OB 2012PGP236

Products:
Initially it started as a footwear retailer. Now it has improved its portfolio to become leader in footwear, sportswear, sports goods, and fashion accessories.

Price:

Pumas pricing is designed to be competitive to the other fashion shoe retailers. Pricing is based on the basis of premium segment as target customers. Puma as a brand commands high premium.

Place:

Marketing II Assignment 2

Vishnu Ruban OB 2012PGP236

Puma shoes are distributed to Multi-Brand store front and the exclusive Puma stores across countries. Puma is continuously focusing on retail expansion and retail-specific knowledge through the opening of new stores.

Puma Online store: This site markets the Puma brand, but is focused on selling its products directly to the consumer. It contains an extensive online catalogue, current news on Puma, employment opportunities, new items and an online shop An interactive online shopping for consumers from extensive online catalogue; very user friendly site with easy navigation

Promotions A detailed report on PUMAs promotion strategies:

Promotions Strategy:

New Stuff advertising campaign:

The communications I chose to analyze are the New Stuff ads on TV and inprint featuring animals interacting with Puma products in adoring and distinctive ways.

Targeting a youthful audience: PUMA decided to communicate their brand image through a product-focused campaign that conveys cutting edge style to a 16-34 year old audience. Style focused messages: Puma introduced the award winning New Stuff campaign as a way to showcase their design leadership. New stuff print executions highlighted the freshest new Puma styles and the commitment that Puma has to providing customers with innovative sport lifestyle products.

Marketing II Assignment 2

Vishnu Ruban OB 2012PGP236

Attracting new customers: New products needed to be showcased to the mainstream audience in a creative and unique way that was unexpected, unique and different. To communicate this concept, animated animals such as monkeys, bats, bees, mice, and fish are depicted as playfully interacting with Puma products in an engaging and fresh manner. Usage of mixed media: Puma first introduced this campaign in 15 second television advertisements. The campaign was visually fresh and clean with crisp photography that drew attention to the products. The print advertising that followed reflects the focused simplicity and whimsical nature of the TV spots. Building momentum from the holiday season: TV spots were run in November and they drew inspiration from Aesops fables by depicting two typical adversaries gifting each other Puma presents. Based upon the success of the TV ads, print ads were run into the following two sea-sons highlighting new Puma products. Elements of the ad migrated into surrounding media environments, engaging advertising savvy young adults who might be suspicious of broadcast advertising. PUMAs Advertising Program: The 4Ms of PUMAs Advertising program, Market- Youths aged 16-35. Mission- To increase sales and the mainstream audiences knowledge of Puma ranges and project the brands core values as being different Message- Active lifestyle Media - TV Advertisements, Print Ads This picture shows the new range of PUMAs Mongolian shoes. Puma engages customers through their Mongolian barbeque concept that enables customers to design and build their own footwear from scratch.

Marketing II Assignment 2

Vishnu Ruban OB 2012PGP236

Concept Retail Stores:

To extend their brand Puma has created concept retail stores that enable people to experience the brand in engaging and compelling ways.

Puma set up this space in the Old Truman Brewery near the Olympic stadium. Branded with Jamaicas team colours, the space was the venue for appearances from the track and field team, including Usain Bolt, as well as liveperformances from the likes of Groove Armada and Professor Green. An interesting way for brands to

interact with the public during Olympic Games. Reference: http://shoparazzi.com/blog/2012/07/31/puma-yard-pop-up-at-brick-lanes-oldtruman-brewery/

Sponsorships:
Sportstars Pel: At the 1970 FIFA World Cup, Pel complied with a request by Puma's representative Hans Henningsen to increase the awareness and profile of Puma after he received $120,000 to wear the Formstripes. At the opening whistle of a 1970 World Cup finals match, Pel stopped the referee with a last-second request to tie his shoelaces before kneeling down to give millions of television viewers a close-up of his Pumas. Two years later, during the 1972 Summer Olympics, Puma provided shoes for the Ugandan 400 metres hurdles champion, John Akii-Bua. After Akii-Bua was forced out of Uganda by its military government, Puma employed him in Germany. Eventually Akii-Bua returned to Uganda. Reference: http://en.wikipedia.org/wiki/Puma_SE

Marketing II Assignment 2

Vishnu Ruban OB 2012PGP236

Usain Bolt: PUMA has always been successful in finding the right partners, who perfectly reflect and convey the image of the brand around the world. Sprint superstar Usain Bolt and the Jamaican track and field team perfectly embody that sports, fun and style have always been key elements in PUMAs brand strategy. At the Olympic Games 2008 in Beijing, Usain Bolt set a 100m world record of 9.69 seconds, smashing his own mark from May that year and sprinted 200m in the world record time of 19.30 seconds, beating Michael Johnsons 1996 record by two hundredths of a second. He won his third gold medal as Jamaica shattered the world record in the 4x100m relay in 37.10 seconds. In close collaboration with Usain Bolt, PUMA developed the Theseus II, the ultimate running shoe. Running the 100m and 200m, the Jamaican sprinter needed a versatile shoe that provided support for power, as well as firmness to hold his foot in place around the turn. PUMA produced a gold version of the shoe for Beijing, which helped power him through the greatest sprints of his life so far. At the World Athletics Championships 2009 in Berlin, Usain Bolt wrote sports history again when he smashed the 100m and 200m world records. The PUMA Yaam sprint spike that propelled him to victory was developed by a team of PUMA designers and technicians who studied and measured Bolts stride and foot form. The vibrant orange sprint spike, designed to contrast the Olympic Stadiums signature blue track and Usains way of achieving outstanding performances, mixing sport and style, caused a global stir. Reference: http://www.marketingweek.co.uk/news/puma-marketing-sparks-locogenquiry/4002276.article, http://counterkicks.com/2011/10/puma-faas-400-usain-bolt/

Events:
BRING IT BACK BIN: Bring Back Bin Recycling Program, to take in those old items, and turn them into recycled goods. Parts of old sneakers can be turned into athletics grounds, carpet pads, automobile and home insulation. Other materials can simply be recycled to produce new products, preventing the unnecessary use of virgin raw materials.

Marketing II Assignment 2

Vishnu Ruban OB 2012PGP236

The program itself, which PUMA runs in cooperation with global recycling company I:CO, is quite simple consumers bring used shoes, clothing and accessories from any manufacturer to a PUMA Store and deposit them in the designated Bring Me Back bins. The used products are then sent off to be reused or recycled. PUMA explaines that this means they are either broken down and reused to create raw materials, or they will be reused if they are still in a suitable condition, or they will be recycled into new products. In addition, the fun (or sad, depending on how strongly youre attached to your shoes) part, people who want to say last words to their favorite pair of sneakers or other pieces of clothing, can write a short obituary and upload it with a photo on the programs website. While we have already implemented numerous initiatives to reduce PUMAs footprint on our mission to become the most desirable and sustainable Sportlifestyle company, the PUMA InCycle collection is the first step to help reduce the amounts of garbage that consumer products cause at the end of their lives.- CEO, Puma Reference: http://www.triplepundit.com/2012/06/pumas-new-recycling-program-offers-shoelovers-write-obituary-shoes/

Marketing II Assignment 2

Vishnu Ruban OB 2012PGP236

Speed test:

To test their speed against world record holder and fastest man alive, Usain Bolt, in PUMAs Everyone can Bolt Speed Test, and stand to qualify for great discounts on PUMA product. PUMA, technical supplier to the Old Mutual Two Oceans Marathon, will operate their Usain Bolt Speed Test mini-track an electronically timed speed trap where the public can test their running speed against Bolts. Reference: marathon-expo http://www.splashpr.co.za/usain-bolts-speed-test-at-old-mutual-two-oceans-

FIFA - World Cup: Puma converted an old Luxliner bus into a moving gear store and will be travelled around the country during the month long World Cup allowing fans to touch then on their bus. Bus looks cool, just hope the clothing wont be all beer-stained and smell like cigarettes by the time they hit Joburg, but were sure it wont. PUMAs Gear Box, converted by Designamite, was fully equipped as a mobile store so that fans across the country will be able to shop onboard. The interior of the former Mercedes Lux Liner owes its customer-friendly design to The Passion bass guitarist from the Dirty Skirts. Besides taking in smaller country towns, the Gear Box will also make appearances at PUMA Party Safaris that are planned for Johannesburg, Port Elizabeth, Pretoria, Cape Town and Durban. Reference: http://www.cherryflava.com/cherryflava/tag/puma/page/2

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Marketing II Assignment 2

Vishnu Ruban OB 2012PGP236

Corporate Social Responsibility

Soles4Souls: At PUMA City NY at the Seaport, PUMA joined forces with sneakerminded charity, Soles4Souls, a global organization that brings footwear to those in need. On Saturday, June 26, PUMA hosted a giant outdoor Shoe Toss at the Seaport as a fun way to donate your old kicks! The message was Bring in any pair of slightly worn-shoes - any brand, any style - for 30% off a new pair of sneakers! At the PUMA Shoe Toss, one can pitch his/her shoe donations at three targets to win prizes like PUMA Store gift cards and tote bags. Everyone took home something, including that discount coupon for their new pair of PUMAs, just for participating. Reference: http://www.puma.com/events/puma-bares-its-soles-for-soles4souls PUMA Sustainable supply chain

PUMA is an active member and supporter of the German Sustainability Code, a resolution passed by the German Council for Sustainable Development with the aim of making sustainability efforts of companies visible and comparable providing a broader basis for the realization of sustainability. On 31 October 2012, Adidas Group, C&A, G-Star Raw, H&M, Levi Strauss and Co., Li Ning, NIKE, Inc., PUMA SE, and Jack Wolfskin released the 2012 Joint Roadmap Third Quarter Progress Report updating progress toward zero supply chain discharge of hazardous chemicals (ZDHC) by 2020. As part of the ZDHC programmes commitment to transparency, this report highlights progress as joint roadmap signatories move toward achieving a new standard of environmental performance for the global apparel and footwear industry. Reference: http://about.puma.com/sustainability/

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Marketing II Assignment 2

Vishnu Ruban OB 2012PGP236

Launch of Eco friendly bags:

Pumas Clever Little Bag will significantly reduce the amount of waste and CO2 emissions that traditional product packaging such as shoeboxes and apparel polyethylene bags generate. This sustainable packaging and distribution system, developed in partnership with renowned industrial designer Yves Bhar of the San Francisco based fuseproject, marks a pivotal phase of PUMAs ambitious long-term sustainability programme and underpins its target of reducing carbon, energy, water and waste by 25%, and developing 50% of its international product collections in footwear, apparel and accessories according to best practice sustainability standards by 2015. Reference: www.puma.com/cleverlittlebag PUMA Social:

Message - All of us have a bit of an an after hour sports person in us, and for that very reason that is why a night at the Puma Social Club is an absolute must. These will include social parties, live music gigs (including performances by big guns Groove Armada, Gyptian and Professor Green), sports and film viewing, sports events for aspiring athletes and Q&A sessions with different industry influencers and of course discount on exclusive Puma pieces from this event. A night party where people can join and party like a sports person. Conclusion: Key learnings from this report (i.e., Pumas Success story) are, A good extensive distribution network should be present for a brand to shine High Qualitative products will arise from Research, which will lead to producing better products. Meeting demand is good thing. But Creating a demand and meeting it gives fruitful rewards.

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